Fortum Oyj

Earnings Release • Aug 15, 2025

Fortum January-June 2025 Half-year Financial Report: Despite strong achieved power price, results affected by low generation volumes and market prices

Fortum January-June 2025 Half-year Financial Report: Despite strong achieved power price, results affected by low generation volumes and market prices

FORTUM CORPORATION INTERIM REPORT 15 AUGUST 2025 AT 9:00 EEST

This release is a summary of Fortum's January-June 2025 Half-year Financial
Report. The complete report is attached to this release as a PDF file. It is
also available on the company's website at www.fortum.com/investors.

Despite strong achieved power price, results affected by low generation volumes
and market prices

April-June 2025

· Comparable EBITDA was EUR 191 (326) million.
· Comparable operating profit was EUR 115 (233) million due to lower
generation volumes and lower power prices.
· Operating profit was EUR 104 (240) million.
· Comparable earnings per share were EUR 0.09 (0.20).
· Earnings per share were EUR 0.12 (0.24).
· Cash flow from operating activities totalled EUR 203 (338) million.

January-June 2025

· Comparable EBITDA was EUR 729 (948) million.
· Comparable operating profit was EUR 577 (763) million mainly due to lower
generation volumes and lower power prices.
· Operating profit was EUR 574 (812) million.
· Comparable earnings per share were EUR 0.51 (0.68).
· Earnings per share were EUR 0.52 (0.77).
· Cash flow from operating activities totalled EUR 656 (876) million.

Summary of outlook

· The Generation segment's estimated Nordic generation hedges: approximately
80% at EUR 41 per MWh for the remainder of 2025 and approximately 60% at EUR 40
per MWh for 2026.
· For 2025, the annual optimisation premium included in the achieved power
price for the whole outright portfolio is estimated to be in the range of 7-9
EUR/MWh.
· UPDATED: In 2025, the total generation volumes are expected to be clearly
below the normal level. Currently, the expected decrease of total nuclear
volumes for the full year is 2.9 TWh, 1.3 TWh of which realised in the first
half of 2025. Of the effect expected in the second half of the year, the
majority is estimated to materialise in the third quarter. Fortum assumes that
its annual hydro volume in 2025 will be below that of a normal hydro year, which
has been 20-20.5 TWh.
· Capital expenditure for 2025-2027, including maintenance but excluding
acquisitions, is expected to be approximately EUR 1.4 billion, of which annual
growth capital expenditure is expected to be EUR 150-300 million and annual
maintenance capital expenditure EUR 250 million.

Key figures

EUR million II/2025 II/2024 I-II/2025 I-II/2024
2024 LTM
or as
indicated
Reported
Sales

                    974          1,255        2,616         3,270

5,800 5,146
Operating

profit 104 240 574 812
1,325 1,087
Share of

profit of 27 2 37 23
19 32
associates
and joint
ventures
Net profit

(after non 104 217 468 688
1,164 944
-controlling

interests)
Earnings

per share, 0.12 0.24 0.52 0.77
1.30 1.05
EUR
Net cash

from 203 338 656 876
1,392 1,172
operating
activities
Number of 4,620 5,679
4,466
employees

EUR million II/2025 II/2024 I-II/2025 I-II/2024
2024 LTM
or as
indicated
Comparable
EBITDA

                    191            326          729           948

1,556 1,337
Operating

profit 115 233 577 763
1,178 992
Share of

profit of 7 -1 15 11
-30 -26
associates
and joint
ventures
Net profit

(after non 87 184 461 614
900 747
-controlling

interests)
Earnings

per share, 0.09 0.20 0.51 0.68
1.00 0.83
EUR

EUR million or as indicated LTM 2024
Financial position
Financial net debt (at period-end)          1,270            367
Financial net debt/comparable EBITDA            0.9            0.2

Fortum's President and CEO Markus Rauramo:

“During the second quarter of 2025, power prices were under pressure both from
abundant hydro reservoirs at the beginning of the quarter and from increased
wind production. However, very low inflows due to modest spring floods and
higher Nordic hydro generation decreased the reservoir surplus rapidly. Nordic
demand increased moderately compared to the same period last year, with
industrial demand still slightly lagging behind pre-energy-crisis levels.

Our second-quarter comparable result was affected by the decline in the
Generation segment's result arising from lower generation volumes and power
prices. Our hydro and nuclear output was 2.2 TWh below last year's second
quarter, mainly due to lower hydro inflows and an extended outage at the
Oskarshamn nuclear plant. Despite this, our achieved power price was almost at
last year's level at 48.1 (48.6) EUR/MWh, supported by a high hedge ratio and
good physical optimisation. We are very pleased that our Consumer Solutions
segment recorded its strongest second-quarter comparable operating profit so
far, driven by improved gas and electricity margins and realised cost synergies
from the brand mergers completed in 2024. The Other Operations segment also saw
an improvement in its comparable result due to divestments carried out in 2024.

During the second quarter, we acquired the Polish electricity solutions provider
Orange Energia for a maximum of EUR 28 million on a cash and debt-free basis.
Orange Energia is one of the largest independent electricity retailers in Poland
with a portfolio of approximately 130,000 customer contracts. Through the
acquisition, we doubled our number of retail customers in Poland.

Our financial position remains strong also following the dividend payment of EUR
1.3 billion. At the end of the second quarter, our financial net debt was EUR
1.3 billion, and our leverage ratio stood at 0.9 times.

After the reporting period, we announced the acquisition of a project
development portfolio for wind power in Finland from the German renewables
developer and constructor ABO Energy. This acquisition strengthens Fortum's
development pipeline for renewable power as we prepare for future growth by
developing ready-to-build projects in the Nordic countries. With the acquired
4.4 GW portfolio, Fortum's pipeline of onshore wind and solar projects in the
permitting phase across the Nordic countries reaches approximately 8 GW, with
more projects in early development phase.

The new power demand projections from Nordic Transmission System Operators
(TSOs), updated in June, expect the Nordic power demand to grow to 550 TWh per
annum by 2030. The estimate decreased slightly from earlier, mainly due to a
postponement in expected demand from hydrogen production which was partly offset
by increased demand from data centres. We continue to see robust underlying
customer demand from various industrial sectors, which we believe reflects the
power demand growth longer term, although we have not signed any significant new
long-term Power Purchase Agreements (PPAs). Currently, customers are signing
short- and mid-term contracts over the next 3-5 years.

Uncertainty in the operating environment has remained strong due to ongoing
geopolitical conflicts and US tariff plans and may pose challenges to major
industrial investments in the Nordics. To support economic growth and long-term
investment planning, a steady and reliable regulatory framework remains
essential. This is relevant, for example, for the taxation of planned data
centres. In our view, public intervention should serve to support industrial
investments rather than restrict them."

Espoo, 14 August 2025

Fortum Corporation
Board of Directors

Webcast/teleconference

A combined live webcast/teleconference for media, investors, and analysts will
be arranged online on 15 August 2025 at 11:00 EEST at
https://fortum.events.inderes.com/q2-2025.

To ask questions, please join the teleconference by registering using the
following link: https://palvelu.flik.fi/teleconference/?id=50050245.

After the registration you will be provided with phone numbers and a conference
ID to access the conference. To ask a question, please press *5 on your
telephone keypad to enter the queue.

A recording of the webcast, as well as the transcript will be published after
the event at www.fortum.com/investors.

Further information:

Investor Relations and Financial Communications: Ingela Ulfves, tel. +358 40 515
1531, Rauno Tiihonen, tel. +358 10 453 6150, Siri Markula tel. +358 40 743 2177,
Pirjo Lifländer, tel. +358 40 643 3317, and investors@fortum.com

Media: Fortum News Desk, tel. +358 40 198 2843

Financial calendar

Fortum's January-September 2025 Interim Report will be published on 29 October
2025 at approximately 9.00 EET.

Fortum's Financial Statements Bulletin for the year 2025 will be published on 3
February 2026 at approximately 9:00 EET. Fortum's Financial Statements and
Operating and Financial Review for 2025 will be published during week 7,
starting on 9 February 2026, at the latest.

Fortum will publish three interim reports in 2026:

· January-March on 29 April 2026 at approximately 9:00 EEST
· January-June on 21 July 2026 at approximately 9:00 EEST
· January-September on 28 October 2026 at approximately 9:00 EET

Fortum Annual General Meeting 2026 is planned to be held on 31 March 2026. The
Board of Directors will summon the Annual General Meeting and publish the dates
related to possible dividend at a later date.

Distribution:

Nasdaq Helsinki
Key media
www.fortum.com

Fortum
Fortum is a Nordic energy company. We generate and deliver reliable energy to
our customers and the Nordic energy system while at the same time helping
industries decarbonise their processes and grow. Our core operations comprise
efficient and best-in-class low-carbon power generation, customer services, and
heating and cooling. Fortum's power generation is already 99% from renewable or
nuclear sources with one of the lowest specific CO2-emissions in Europe. We are
guided by our ambitious SBTi-validated emission reduction targets on our way
towards net-zero by 2040. For our ~4,500 employees, we commit to be a safe and
inspiring workplace. Fortum's share is listed on Nasdaq
Helsinki. fortum.com (https://www.fortum.com)